Investor demand for platinum bars and coins remains buoyant

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The American Eagle 1 ounce platinum coin 2021 achieved its second-highest sales ever at 75,000 ounces in the five months ended May 31, reports the industry organization World Platinum Investment Council (WPIC).

It notes that this beats last year’s sales of 56,500 oz – which was notable as the highest figure in 21 years – by almost 33%.

The record for sales of 1 oz American Eagles platinum bars was set in 1998 at 133,002 oz.

This year’s American Eagle platinum bars program began with an initial minting of 35,000 ounces in March and a further 40,000 ounces were minted two months later.

The US Mint has not announced whether to cap its mintage for Platinum Eagles to 75,000 ounces in 2021 or whether it intends to issue more of these coins, the council points out.

She praises platinum for outperforming gold so far this year.

“Platinum is widely viewed not only as an undervalued precious metal, but also one that has the potential to support higher value due to the strong global economic recovery that is fueling the use of platinum in industrial applications.

“While the prices of other industrial metals, which are also benefiting from this rebound, have already risen significantly, the delayed response of platinum is seen by some investors as an opportunity,” notes the WPIC.

It is said that several state mints are struggling to meet high consumer demand for gold and silver coins, but the additional platinum eagles would help meet the strong investor demand for platinum.

The American Eagle 1 oz platinum coin can be purchased from a US Mint authorized dealer network. they cannot be bought by the public directly from the mint itself, the council clarifies.

VIEW OF BAR & COIN

In the past year, pandemic-related factors created record-breaking global demand for platinum bars and coins, which at 586,000 ounces was the third-highest sum ever.

This is despite the fact that platinum bars and coins were completely sold out by April 2020 in North America due to extremely strong retail demand and inventories were only slowly replenished from July 2020, the WPIC points out.

He notes that global demand for platinum bars and coins is projected to hit 436,000 ounces this year, a decrease of 26% or 150,000 ounces from the exceptional previous year.

This forecast, made at the beginning of the year, takes into account the significant 30% year-on-year increase in the price of platinum in the first quarter of this year, which resulted in some profit-taking in Japan.

It also includes the expectation that the US Mint will only produce 35,000 Platinum Eagles as they had stated, instead of the 75,000 now issued.

Investor enthusiasm for platinum appears to be stronger than originally forecast, as does the interest of providers of platinum investment products in the market, according to the council.

“Demand for precious metals as a hedge against global risk remains high as platinum attracts investors who recognize its industrial uses and the boom that comes from the consumption surge generated by fiscal stimulus programs around the world.

“The investment demand for platinum for bars and coins as well as physically backed exchange-traded platinum funds will continue to grow due to the limited supply of platinum, the increase in automotive use and the strategic role of platinum in applications that are central to the establishment of the hydrogen economy”, stresses the Council.



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